London’s rental market faces unique test under new housing law

The capital’s private rented sector includes more than 400,000 university students, making student housing cycles a major factor in how the reforms will play out.

Related topics:  London,  Propertymark,  Student Accommodation
Property | Reporter
18th February 2026
London - 123
"London’s rental market is complex and fast-moving. By recognising the capital’s specific pressures and planning accordingly, policymakers can help ensure the reforms deliver improved standards and security without unintended disruption"
- Nathan Emerson - Propertymark

Propertymark has set out a series of concerns about how the Renters’ Rights Act 2025 will operate in London, responding to the London Assembly Housing Committee’s call for evidence on implementation in the capital.

The organisation supports the aim of improving standards and strengthening tenant security, but it is urging the London Assembly, the Greater London Authority and borough councils to factor in the capital’s distinct housing conditions so the reforms work effectively and remain sustainable.

London’s distinct rental market

London’s private rented sector operates on a scale and with a level of complexity not seen elsewhere in England. Propertymark members manage hundreds of thousands of tenancies across the capital and report that supply remains below pre-pandemic levels while demand continues to outstrip availability.

The organisation says careful implementation, clear guidance and consistent enforcement will be critical to keeping the market stable as the new framework takes effect.

“We support measures to improve standards and provide greater security for renters,” said Nathan Emerson, CEO of Propertymark. “However, London’s rental market has distinct characteristics that require careful consideration. Higher demand, significant student populations, longer court timelines and existing licensing schemes mean implementation in the capital will present specific challenges.

“Our focus is on working constructively with policymakers to ensure the Renters’ Rights Act is delivered in a way that protects tenants, supports responsible landlords and maintains much-needed rental supply.”

Key considerations for London

Propertymark has grouped its main concerns into four areas.

1. Court capacity and possession timelines

With the removal of Section 21, landlords will rely on Section 8 grounds to regain possession. London already records some of the longest average possession timelines in England.

Propertymark is calling for coordinated work with the Ministry of Justice and local courts to ensure sufficient capacity and resources are available so cases can be processed efficiently and fairly for both tenants and landlords.

2. Student housing dynamics

London is home to more than 400,000 university students. Although the new Ground 4A allows possession to be regained in Houses in Multiple Occupation, smaller student properties sit outside this provision.

The organisation says policymakers should closely monitor how the reforms interact with academic calendars and student housing cycles, particularly given the capital’s large international student population.

3. Overseas landlord engagement

A significant share of London landlords live overseas and depend on professional managing agents. The introduction of the PRS Database and mandatory membership of the Landlord Ombudsman will require clear communication, practical guidance and systems that are easy to use.

Propertymark is urging early engagement with this group and streamlined processes to support registration and long-term compliance.

4. Enforcement consistency across boroughs

London’s 32 boroughs already run different licensing schemes and enforcement approaches. Propertymark recommends embedding the following principles into implementation:

A London-wide framework or shared guidance to improve consistency

An education-led approach for compliant landlords and agents

Targeted action against rogue operators

Closer collaboration with professional bodies to raise standards

With local authorities facing resource pressures, the organisation says coordinated planning will be essential if enforcement is to remain effective.

A call for collaboration

Propertymark is also asking the Greater London Authority and London Councils to take practical steps to support delivery of the reforms, including:

Developing a consistent compliance approach across boroughs

Supporting professional qualifications and standards for letting agents

Updating homelessness guidance following the removal of Section 21

Tracking PRS supply, court performance and rental trends as the changes take effect

It further recommends that policymakers assess the early impact of the legislation in London before introducing any additional tenancy or rent control measures.

“London’s rental market is complex and fast-moving,” Emerson added. “By recognising the capital’s specific pressures and planning accordingly, policymakers can help ensure the reforms deliver improved standards and security without unintended disruption. We stand ready to work with the London Assembly and boroughs to support a smooth and balanced transition.”

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